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Ohhh, but Spot is diving therefore it's worth $X

Below is my response to a potential eBay buyer whom I'm unsure if he understands how it really works. Then his response below that. How'd I do politely educating him? image I think he gets it for the most part now. Sometimes you just have to take the time to esplain it, which is fine with me, I don't mind taking the time.

Name,
yeah it's diving on an extremely thinly traded market today. Someone who really wanted to take it down today that have enough ability to do so is, that's all. Once the market gets back to a more realistic traded volume, probably at least a week because alot of traders take the upcoming week off too, it'll bounce back.

Do you understand the difference between paper contracts (the stock market) and the physical market (actually taking delivery of actual bars)? This is why I say what Spot is doing has no baring any longer. There are stock traders that trade in enormous volumes of PAPER silver. They would go about their business in an entirely different manner if they had to actually wait a couple days for the actual physical bars to arrive. Do you think they would expose themselves in that manner with the volume they trade paper silver? I highly doubt it...hence why there are 2 different markets for the "product", now MORE that ever.

Sorry to ramble on, just wanted to let you know how I view the market of actual physical silver products. Take care and it's time for me to go burn off that turkey and all the others dishes we ate yesterday LOL. I hope to do business with you Name, you seem like an understanding buyer.

Sincerely,

Rich
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A buddy of mine has recently gotten me intetested in silver, so I'm doing what I can to understand the market. Lots of hours spent researching online the past month or so. I mainly do sports cards, but would like something a little more solid to invest in. The crossover pieces like yours that blend the two interests I have (silver and sports) are very attractive to me because of it. Also, the low production and collectibles factor of these items is nice as they aren't completely reliant upon silver value alone. Hope we can do some business going forward as well. I appreciate the correspondence giving me the additional info btw. Good luck burning off the calories man. Lol ttyl
To forgive is to free a prisoner, and to discover that prisoner was you.

Comments

  • perkdogperkdog Posts: 29,343 ✭✭✭✭✭
    Rich I think you did very well, I also think what you did there is a good bussiness model. Rather than not dealing with a potential customer by blocking him or punking him off you stated your case very well.
  • bronco2078bronco2078 Posts: 9,964 ✭✭✭✭✭



    "I mainly do sports cards " image
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i>"I mainly do sports cards " image >>


    I hope he knows cardboard spot is manipulated...
    keceph `anah
  • MsMorrisineMsMorrisine Posts: 32,123 ✭✭✭✭✭
    Futures market, not stock market.

    Are these HOFs?

    It doesn't matter anyway, I guess, as "supply & demand" and "check sold auctions" are shorter yet valid and explanatory replies.



    I realize it is supply and demand but I'm surprised premiums are increasing. This is ugly for PMs and the slow drain is not good. Although someone could claim manipulation...

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • BAJJERFANBAJJERFAN Posts: 30,977 ✭✭✭✭✭


    << <i>Futures market, not stock market.

    Are these HOFs?

    It doesn't matter anyway, I guess, as "supply & demand" and "check sold auctions" are shorter yet valid and explanatory replies.



    I realize it is supply and demand but I'm surprised premiums are increasing. This is ugly for PMs and the slow drain is not good. Although someone could claim manipulation... >>



    If you keep premiums low when silver spot is low, people buy too much and can afford to sit on it. When prices recover those same people become your competition because they have silver to sell and have a cost basis lower than you can get from your supplier/AP. Assuming of course that they bought the silver to flip and not to stack.
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Thread is getting entirely off track.
    The point of it is to show that there's still new buyers that need a little help understanding what's going on. I know that's hard to fathom here where everyone knows it all and buys under Spot and sells for well over every single transaction they do. (eyeroll)
    To forgive is to free a prisoner, and to discover that prisoner was you.
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